When you see this sign you should stop and:

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Check traffic in all direction before proceeding.
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Yield the right-of way to all vehicles coming from the right, then proceed.
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Yield the right-of way to all vehicles coming from the left, then proceed.
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Check for vehicles in the opposite direction, then proceed.
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Explanation
The Stop sign is the only 8-sided sign you will see on the highway. When they see this sign, drivers must come to a full stop, yield the right-of-way to vehicles and pedestrians in, or heading toward, the intersection. Drivers may not proceed until it is safe to do so, and until the way is clear to completely pass through the intersection.
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